Namaste - My Learning of Trading in Nifty

[crown]

Namaste
This is the chart of ABNUVO, daily chart.

isme kuchh samajh nahi aa raha?
penant banaya tha, phir usme downside move hua par price neeche nahi gaya aur ab price wapas upar aa raha hai.

Only useful thing is the volume, which is contracting while it is going up. 800/- has reasonable level of resistance and good support there at 768. Violation of either side can give good move. If I could find any upside signal between 772-768, it will be reasonable to enter it while keeping the options open to go short if stoploss hit.

please guide me, if this will be a good strategy.

chart is below

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[sana]

And, this is what I am observing in EOD Chart of Nifty

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Thanks a ton to Rajput bhai because it is his Turtle Pivot and CCI which I have used and slightly adjusted.
As can be seen in the chart, there is a Pivot Breakout on the upside. And as per Rajput bhai (I am depending a lot on him), Pivot breakouts continues at least two candles, which in this case will be two days. So, I can expect upside in Nifty for next two days. Second noticeable thing is MacD positive crossover. Third supportive thing is the volume. CCI being above 203 is a bit of concern; but it can be dealt with very careful watching of Nifty moves tomorrow. At least, I am having both options open for tomorrow and can easily go short, in case things don't work for upside move.
Weekly chart has already giving moderately positive signal for going long.

Request to all:

Please guide me.

Hi Crown,

Pls can u provide the AFL of Pivot Up-Down.

Regards.

 

[crown]

Hi Crown,

Pls can u provide the AFL of Pivot Up-Down.

Regards.

namaste bhai

I tried to upload the afl, but could not attach it. It shows invalid file. However,I am posting it as it as.

// User defined parameters.


room=Param("Room for S/L as % of Pivot value",0.001,0.001,0.02,0.001);


// Now calculate pivots.

PH= ValueWhen(
(Ref(H,-2) > Ref(H, -4)) AND
(Ref(H,-2) > Ref(H, -3)) AND
(Ref(H,-2) > Ref(H, -1)) AND
(Ref(H,-2) > H), Ref(H,-2));

PL= ValueWhen(
(Ref(L,-2) < Ref(L, -4)) AND
(Ref(L,-2) < Ref(L, -3)) AND
(Ref(L,-2) < Ref(L, -1)) AND
(Ref(L,-2) < L), Ref(L,-2));

// filter lines

//phfilter=PH+(room*PH);
//plfilter=PL-(room*PL);


//Uncomment following code if you wish to see the pivot lines.
Plot(Ref(PH, 2), "UpPivot", ParamColor("UpPivot Color",colorRed), styleDashed);
Plot(Ref(PL, 2), "DownPivot",ParamColor("DownPivot Color",colorGreen), styleDashed);

//Plot(Ref(Phfilter,2), "Upfilter", ParamColor("upfilter Color",colorBlue), styleLine);
//Plot(Ref(Plfilter,2), "Downfilter",ParamColor("dnfilter Color",colorOrange), styleLine);


//Condition for buy : Enter when Close crosses latest pivot high.
Buy = C> PH ;
Sell = C < PL;

Buy = ExRem(Buy,Sell);
Sell= ExRem(Sell,Buy);


shape = Buy * shapeUpArrow + Sell * shapeDownArrow;
PlotShapes( shape, IIf( Buy, colorGreen, colorRed ),0, IIf( Buy, Low, High ) );

 

[sana]

namaste bhai

I tried to upload the afl, but could not attach it. It shows invalid file. However,I am posting it as it as.

Thanks a lot Crown.
Can I use these signals for positional trades ?

 

[crown]

Thanks a lot Crown.
Can I use these signals for positional trades ?

Bhai please ask Rajput bhai in this regard
I am a very novice learner

 

[rajputz]

Thanks a lot Crown.
Can I use these signals for positional trades ?

Bhai please ask Rajput bhai in this regard
I am a very novice learner

Not positional, but yes you can use it for swing trading. Just use CCI 20 for daily charts, and it will be fine. I suggest using CCI for good entry and exit. Cause exit based on pivots alone is little lagging. So trade accordingly.

take care.

 

[crown]

Thanks Rajput bhai

bhai 2-3 din se siraf samajhane me hee laga hu. Thoda bahut trade bhi kiya jisme mamuli nuksaan hai. But because, I am able to understand a bit now, I feel overall satisfied with my efforts and very much thankful to you and other big bro over here.

My newly developed momentum system (based upon CCI) has given sell signal in Nifty, which denotes that Nifty is very likely to go down now if it trades below yesterday low i.e. 5361.50. This system also indicates that the current weakness of momentum will remain applicable till nifty closes above yesderdays high i.e. 5410. Therefore, today I will be trying to short a few scripts.

Thanks bhai

 

[sana]

Not positional, but yes you can use it for swing trading. Just use CCI 20 for daily charts, and it will be fine. I suggest using CCI for good entry and exit. Cause exit based on pivots alone is little lagging. So trade accordingly.

take care.

Hi Rajputz,
Swing trading means intra day or what? and for CCI 20, Buy should be above
-100 and Sell below +100 on daily charts. Pls can u explain in details with an example (backtesting).

regards

 

[rajputz]

Hi Rajputz,
Swing trading means intra day or what? and for CCI 20, Buy should be above

Intraday is intraday. You squareoff your position by end of day. You dont carry an overnight position.

Where as swing trading time can differ from person to person. For me it is 1 - - 10 days trading time. For other traders it can be a timeframe of 2 weeks to 2 months also(medium term swing trading). Beyond that it may range to 2 months to 6 months (long term swing trading).

-100 and Sell below +100 on daily charts. Pls can u explain in details with an example (backtesting).

Well, buying and selling over cci is totally a different activity for me. Just because price crossed over 100 and -100 line doesnt mean that we should immidiately buy or sell. Personally i feel that the buying and selling method you are considering over cci will not work. Like buying on cross of -100 and selling on cross of +100. You will get a lot of whipsaws in highly trending shares. Because for me at this time share is getting accumulated or distributed. In accumulation of the share i will get a trend continuation signal after crossing of -100 or +100 line. For eg. cci approached -100 line. Your approach will be to buy. But for me it will be either accumulation or distribution. I will get a trend reversal signal if it is distribution phase by smart money, or trend continuation signal if it is accumulation. I will act on signal, not just a single factor. Simmilarly there are many other factors counting in. But still if you can find a way out over this method of buying over -100 and selling below +100 and make it work, then you can try. You will learn even if it works or not.

There are many other factors that are to be considered. I prefer using cci over woodies cci defined parameters. And it is total different way of taking trades. Although i have compromised a bit according to my working, removing whipsaws for me. There are different approaches of using CCI.

1. Using cci for divergence trading.
2. Using cci for momentum trading. Simply buying and selling at cross of 0 line. When price is below or above 34 EMA.
3. Using the patterns described by Ken Wood (woodies).

I use the third one. Not all the patterns, but the one i find most reliable. And after you select your method of trading, backtesting can be done accordingly by bar replay function of amibroker.

 

[crown]

hurray...!!
this feeling is great.
let me share that from the last two consecutive days, I am trading a lot (though in very small volumes) and have been successful in ending in plus. Though, not much; but too much for my confidence to increase my volumes in coming days.

What I have learned in past couple of days runs as under:

1 - Around six-seven months ago, I read a book title "Outliers" wherein a chapter "10000 hours" appealed a lot to me. It said that anything, damm anything in this world, if practiced by anyone for 10000 hours; that anyone will surely achieve mastery in that damm anything without fail. Therefore, all I have done and have been doing is to read and analyse as much as possible. Around one week ago, I was too much confused and didn't know what to do. Then, this thing strike; and I kept on doing the funny and stupid analysis of me, just like a maniac. And, wow....! since yesterday, I am having a feeling that these charts do speak. Though, I am not able to understand the whole thing they speak, but at least I can feel them speaking to me. Therefore, I learned this.

2 - Second thing, which I learned is about having confidence in my system and/or my understanding. Rajput bhai, once mentioned this fact to me. At that time, I was confident on my system, but I was not confident in myself. Therefore, I kept on trying. around 3-4 days ago, when I was too much depressed and felt like crying over my helplessness for not being able to understand, I remembered how I learned swimming. I was around 21 years old at that time. It took me 3 months to be able to swim in 5 foot water; but when it comes to deep water, I was always afraid. My friends, who started with me had grown into great swimmers; but I was not able to have the confidence. That time, one of my friend decided that they will be secretly push me into the deep water and they did so. At that time, when I was suddenly thrown into the deep water; I was shocked and while going inside the water, I was totally hopeless to breath again. But, within a few seconds I was going up and as soon as my head rose above the water level, I was shouting for help. My friends were there watching me and laughing; I was very angry and wanted to kill them all. They were no showing any signs of helping me. Within a few seconds, I was again drowning, I tried to swim but failed. Sensing the seriousness, my friends dive and got hold of me. As soon as, I was out of water, I started fighting and abusing. They kept mum and when I was empty, one of them said, "now you know that no matter you know swimming or not, but at least once, water allows you to come over its level, and that means that if you can swim in 5 foot, you can swim in 50 foot as well. Todays incident will give you the confidence to dive in deep water." And, I was again shocked and surprised that it was correct. I was not confident that the water will give me any chance of surviving; but this is the fact and that fact could only be ascertained after diving into the deep water without having any outside support; only inside confidence is required. Similarly, Rajput bhai helped me in getting/achieving/feeling the confidence in me and my understanding. And Raunak Sir guided me to have the proper strategy. AW Sir, has helped me in correcting and refining my strategy. Rajbhai, helped me with my alf's problems. Praveen bhai, helped me in keeping the hard things in lighter mode. And, there are many others who helped me in one or other way. I hereby place my deepest gratitude and regards for all including the persons who run this site.